Addressing HR needs for multiple divisions in multiple states was no easy task. A mid-market employer explains how business transformation benefited its employee base.
Editor’s note: Mid-market Momentum is a new column in which mid-market buyers—the fastest growing segment of the HRO market and defined by HRO Today as those with 500 to 5,000 employees—discuss their outsourcing efforts and the effect on their organizations.
ComUnity Lending, Inc.
Address: 610 Jarvis Drive, Ste. 200, Morgan Hills, CA
Web Address: www.comunitylending.com
Number of Employees: 2,600
Description of Primary Products or Services: Mortgage Lending
Date of Outsourcing Commencement: 2002
Provider: Gevity, Inc.
Please describe the circumstances that led to your company turning to HRO:
Our goal of becoming a multi-state lender was the biggest challenge. Our core competency is not human resources; it is mortgage lending. Mortgage lending is already a highly regulated industry when lending in multiple states. I wanted 100-percent assurance that we were a compliant employer in all the states we had employees in. I didn’t want to worry about the differences in state laws, workers compensation, etc., and their reporting requirements. I also wanted a Web-based, self-service platform for our employees, so technology was very important. In addition to the multi-state and technology challenges, I wanted good, national benefits for our employees at the lowest cost possible.
What were your initial concerns and worries about outsourcing HR services?
Multiple divisions within the company had different benefits and pay, and this made many ComUnity Lending employees apprehensive. It was challenging to find the right on-site human resources manager (HRM) to fit in culturally and determine how many Gevity employees we needed, just as our mortgage volume and hiring surged. Gevity and ComUnity Lending communicated constantly and were flexible in our approach to changing the original plan when necessary. We also communicated regularly with our employees.
How did you decide which services could be outsourced (in-scope) and which could not (out of scope)?
We really needed to focus on mortgage lending instead of HR so we shifted all HR functions to the on-site Gevity employees. Issues such as manager and team leader HR training are available online from Gevity. Annual reporting and workers’ compensation and our handbooks are managed and maintained by Gevity. It has allowed ComUnity Lending to focus on new initiatives and production opportunities. It’s an on-site outsourcing solution.
Can you describe the current steady state of your HR department?
We made many improvements since outsourcing HR to Gevity. We took advantage of Gevity’s technology innovation and have Web-based HR functions that provides a self-service aspect to our employees. Management is confident that Gevity is managing all aspects of human resources efficiently and effectively, which allows them to focus on growing and maintaining the business.
How did you decide which provider was best suited for your needs?
We went through an RFP process where we narrowed it down to four potential candidates. We checked potential candidate’s references, assessed the cultural fit within ComUnity Lending, and evaluated each of the provider’s value propositions. After reviewing all these elements, we came to the conclusion that Gevity was the best fit for our company due to their experience, level of service offered, and their use of technology for HR functions.